GSK to acquire stake in Aspen

GSK is to take a 16 per cent stake in Aspen Pharmacare Holdings - Africa's biggest generic drug maker

GlaxoSmithKline (GSK) is to take a 16 per cent stake in Aspen Pharmacare Holdings - Africa's biggest generic drug maker. The deal, based on transfer of assets and subject to regulatory approvals, is said to be worth 3.47bn rand ($418m).

Aspen acquires the rights for its subsidiary company, Pharmacare, to distribute GSK products in South Africa and will collaborate with GSK on marketing and selling prescription products in sub-Saharan Africa (except South Africa, Lesotho and Swaziland). A newly formed subsidiary will acquire GSK's manufacturing facility in Bad Oldesloe, Germany. Aspen Global will acquire eight products for worldwide distribution: the chemotherapy drugs Leukeran, Purinethol and Alkeran (excluding US); Kemadrin – for Parkinson's disease; Lanvis and Myleran – for leukaemia; Septrin – a broad-spectrum antimicrobial; and Trandate – for hypertension.

GSK and Aspen have collaborated on a number of projects in recent years. Among other ventures, Aspen distributes some of GSK's prescription products in South Africa, was licensed to manufacture antiretrovirals before patent expiry and distributes GSK's OTC products in Australia.